FCPO Commentary on 05/12/08

FCPO 3rd month January futures contract plunge RM74 to closed RM1462 as compare to previous trading session with 5247 lots traded in the market. CPO price was traded lower as crude oil and soybean oil was traded lower during the trading session.

Technically, CPO price plunge after CPO price fails to hold above support level RM1533 region; 61.8% Fibonacci retracement levels. Despite CPO price fails to hold above RM1533, CPO price was seen have final resorts at RM1450 region at 78.6% Fibonacci retracement levels. Traders were advice to temporary stay out from the market in order to have clearer view on the CPO price movement. However, CPO price was still preferable to call for long position in the coming trading session. Resistances were seen at RM1500 and RM1560 region.